One of the best ways to break out of the debt cycle is to have an emergency savings fund to cover unexpected expenses. This way, when your car breaks down or the refrigerator quits working, you won’t need to rely on credit cards or bank loans to cover the expense. Crown recommends saving $1000 in your emergency fund as a first step in the Crown Money Map Destination One.

However, if you are already living paycheck to paycheck, how can you find any extra money to fund this emergency savings account?

First, you must begin by developing a spending plan. Start by tracking your spending for one month. Save every receipt and write down every cash purchase. Carefully review your expenditures and look for areas where you can cut back.

Here are some ideas for cutting back your spending to fund your emergency savings account. Keep in mind, these don’t have to be permanent decisions, but if you are trying to save money for your emergency fund, perhaps you could do without a few things for a couple of months.

1. Check your “extras.” It may be only a few dollars here or there, but these little extras really add up. Love your coffee? Try making it at home instead of splurging for that expensive gourmet cup at your favorite coffee shop. Soda with every meal? Drink water instead. Curb those afternoon trips to the office vending machine. Bring snacks from home. Try brown bagging it for lunch instead of eating out every day.


2. Re-evaluate your “essentials.” Think about the everyday common products we use. Do you really need that expensive lipstick from the famous designer, or will a cheaper tube from the drug store suffice? What about things like expensive hair cuts or colors and salon manicures and pedicures? Is there a way you could do this at home to save some money? Could you hand wash some of your clothing instead of dry cleaning?


3. Buy generic. Talk to your pharmacist about generic options for your prescriptions drugs. Buy the store brand of toiletries, cleaners, household goods such as paper towels, toilet paper, garbage bags, sandwich bags, etc.


4. Go discount. Check discount stores for basic clothing needs such as socks, underwear, and t-shirts. Also check surplus stores, consignment stores, and discount department stores for other clothing needs. Many of these stores sell new or slightly used name brand items at half price or less.


5. Shop smarter for your groceries. Make out a weekly menu and buy only the things you need for those meals. Plan your meals around store specials and coupons. Look online for coupons at: Stock up on nonperishable foods when they are on sale. Go “meatless” a few nights a week. Drink water instead of expensive and sugary sodas, teas, and juices.


6. Watch out for “impulse” buys. They are almost always near the register and include magazines with those wonderful looking recipes on the front. Chances are, you will never make that at home anyway. If you really want to read that issue, see if your local library has a copy.


7. Get your news for free. Instead of paying for that paper delivery, try reading your news on the Internet or at the library. Or simply watch TV or listen to the radio as you commute to work. Too much bad news can be depressing anyway.


8. Entertain at home. Have fewer dinners out, and cook at home instead. Invite friends over for a potluck dinner. Check movies and books out from the library. Have a “game” night at home, using those board games you’ve had stuffed in the closet for years.


9. Down-size your services. Evaluate cable or cell phone packages and see if there is a cheaper package that will meet your needs. See if you can bundle your packages of cable, phone, and Internet.


10. Sell your extra stuff. Clean out the basement, attic, garage, and closets. We all have extra things we never use any more. Sell them on eBay or Craigslist, have a yard/garage sale, or sell clothes, sports equipment, exercise equipment, and furniture at consignment stores.


11. Have a “no spend” month. Simply buy nothing other than what you need.


12. Save your change. Empty your pockets and purse of coins each night or sock away every $1 or $5 bill you get. Every little bit adds up.


13. Don’t spend bonuses. Save tax refunds, Christmas bonuses, birthday money, or any extra money from a raise.

Make a game of saving money, and get the whole family involved. See how much you can save in one week or in one month. Try to beat your own best total the next time. Before you know it, you will have saved enough to fund your emergency savings account.